Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: $\begin{array}{llcc} \text { Opening Balance } & \text { Purchases } & \text { Sales } \\ \text {September1\quad 5 units@\$200 \( \$ $ } & \text {September3\quad 5 units @ \$240 $ \quad $}& \text {September $ 7 \quad 7 $ units}\\ \text { } & \text { 12\quad 3 units@\$260} & \text { 27\quad 5 units } \\ \text { } & \text {25\quad 6 units@\$200 } & \text { } \\ \end{array}\) -What was the value of cost of goods sold of Algo,using the FIFO assumption?

A) $2640 B) $2700 C) $2720 D) $2400. A) $2640 B) $2700 C) $2720 D) $2400.

Use the information below to answer the following questions: Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: \[\begin{array} { l r l c } & \$ & & \$ \\ \text { Beginning accounts receivable } & 100000 & \text { Sales (all credit) } & 720000 \\ \text { Beginning accounts payable } & 70000 & \text { Cash received from customers } & 680000 \\ \text { Beginning inventory } & 160000 & \text { Cash paid to suppliers } & 380000 \\ \text { Purchases (all credit) } & 350000 & & \\ \text { Ending inventory count } & 90000 & & \end{array}\] -What is the balance of Pinkerton Ltd's accounts receivable at year-end?

A) $40 000 B) $140 000 C) $170 000 D) $350 000. A) $40 000 B) $140 000 C) $170 000 D) $350 000.

Use the information below to answer the following questions: Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: \[\begin{array} { l r l c } & \$ & & \$ \\ \text { Beginning accounts receivable } & 100000 & \text { Sales (all credit) } & 720000 \\ \text { Beginning accounts payable } & 70000 & \text { Cash received from customers } & 680000 \\ \text { Beginning inventory } & 160000 & \text { Cash paid to suppliers } & 380000 \\ \text { Purchases (all credit) } & 350000 & & \\ \text { Ending inventory count } & 90000 & & \end{array}\] -What was the balance of Pinkerton Ltd's accounts payable at the end of the period?

A) $20 000 B) $40 000 C) $90 000 D) $100 000 A) $20 000 B) $40 000 C) $90 000 D) $100 000

Use the information below to answer the following questions: Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: \[\begin{array} { l r l c } & \$ & & \$ \\ \text { Beginning accounts receivable } & 100000 & \text { Sales (all credit) } & 720000 \\ \text { Beginning accounts payable } & 70000 & \text { Cash received from customers } & 680000 \\ \text { Beginning inventory } & 160000 & \text { Cash paid to suppliers } & 380000 \\ \text { Purchases (all credit) } & 350000 & & \\ \text { Ending inventory count } & 90000 & & \end{array}\] -If Pinkerton Ltd had employed the periodic inventory method,what would its gross profit have been?

A) $320 000 B) $300 000 C) $280 000 D) $440 000. A) $320 000 B) $300 000 C) $280 000 D) $440 000.

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: $\begin{array}{llcc} \text { Opening Balance } & \text { Purchases } & \text { Sales } \\ \text {September1\quad 5 units@\$200 \( \$ $ } & \text {September3\quad 5 units @ \$240 $ \quad $}& \text {September $ 7 \quad 7 $ units}\\ \text { } & \text { 12\quad 3 units@\$260} & \text { 27\quad 5 units } \\ \text { } & \text {25\quad 6 units@\$200 } & \text { } \\ \end{array}\) -What was the value of cost of goods sold of Algo,using the LIFO assumption in a perpetual inventory system?

A) $2600 B) $2700 C) $2720 D) $1400. A) $2600 B) $2700 C) $2720 D) $1400.

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: $\begin{array}{llcc} \text { Opening Balance } & \text { Purchases } & \text { Sales } \\ \text {September1\quad 5 units@\$200 \( \$ $ } & \text {September3\quad 5 units @ \$240 $ \quad $}& \text {September $ 7 \quad 7 $ units}\\ \text { } & \text { 12\quad 3 units@\$260} & \text { 27\quad 5 units } \\ \text { } & \text {25\quad 6 units@\$200 } & \text { } \\ \end{array}\) -What was the value of ending inventory of Algo,using the LIFO assumption in a periodic inventory system?

A) $1580 B) $1480 C) $1460 D) $1590. A) $1580 B) $1480 C) $1460 D) $1590.

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: $\begin{array}{llcc} \text { Opening Balance } & \text { Purchases } & \text { Sales } \\ \text {September1\quad 5 units@\$200 \( \$ $ } & \text {September3\quad 5 units @ \$240 $ \quad $}& \text {September $ 7 \quad 7 $ units}\\ \text { } & \text { 12\quad 3 units@\$260} & \text { 27\quad 5 units } \\ \text { } & \text {25\quad 6 units@\$200 } & \text { } \\ \end{array}\) -What was the value of ending inventory of Algo,using the moving weighted average assumption and a perpetual inventory system?

A) $1460 B) $1480 C) $1540 D) $1590. A) $1460 B) $1480 C) $1540 D) $1590.

Use the information below to answer the following questions: A company purchases and sells Roofoo. It began last year with 5 units of Roofoo on hand at a cost of $10 each, and during the year its purchases and sales were as follows: \[\begin{array} { l c c c c } \text { Date } & \begin{array} { c } \text { Units } \\ \text { purchased } \end{array} & \text { Units sold } & \begin{array} { c } \text { Units on } \\ \text { hand } \end{array} & \begin{array} { c } \text { Purchase } \\ \text { price } \end{array} \\ \text { July 1 } & & & 5 & \$ 10 \\ \text { Sept 10 } & 5 & & 10 & \$ 12 \\ \text { Dec 20 } & & 6 & 4 & \\ \text { Mar 3 } & 4 & & 8 & \$ 15 \\ \text { June 10 } & &5 & 3 & \end{array}\] -What was the value of ending inventory of Roofoo,using the LIFO assumption in a periodic inventory system?

A) $30 B) $36.43 C) $45 D) $109.26. A) $30 B) $36.43 C) $45 D) $109.26.

Exam 9: Inventory

Use the information below to answer the following questions: At 1 July 2011, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2012, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15,000. -What was Epsilon Pty Ltd's cost of goods sold for the year?

(Multiple Choice)

4.8/5

(35)

Question 21

Which of the following statements about the use of the LIFO assumption is true?

(Multiple Choice)

4.9/5

(34)

Question 22

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: Opening Balance Purchases Sales September15 units@ \2 00 \ September35 units @ \2 40 September 77 units 123 units@ \2 60 275 units 256 units@ \2 00 -What was the value of cost of goods sold of Algo,using the FIFO assumption?

(Multiple Choice)

5.0/5

(35)

Question 23

Which of the following statements about the last-in,first-out (LIFO)assumption is true?

(Multiple Choice)

4.9/5

(31)

Question 24

Which,if any,of the following cost flow assumptions is NOT affected by the inventory control method employed,i.e.periodic or perpetual?

(Multiple Choice)

4.8/5

(39)

Question 25

The entry to record a credit sale when the periodic inventory method is employed will include a debit to:

(Multiple Choice)

4.9/5

(34)

Question 26

Which of the following inventory assumptions provides the best matching of revenues with expenses?

(Multiple Choice)

4.8/5

(37)

Question 27

Which of the following would produce the lowest net profit in periods of falling prices if inventory levels are not decreasing?

(Multiple Choice)

4.9/5

(25)

Question 28

Use the information below to answer the following questions: Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: \ \ Beginning accounts receivable 100000 Sales (all credit) 720000 Beginning accounts payable 70000 Cash received from customers 680000 Beginning inventory 160000 Cash paid to suppliers 380000 Purchases (all credit) 350000 Ending inventory count 90000 -What is the balance of Pinkerton Ltd's accounts receivable at year-end?

(Multiple Choice)

4.7/5

(35)

Question 29

Which of the following journal entries is one of the entries made to record a credit sale under the perpetual inventory system?

(Multiple Choice)

4.8/5

(41)

Question 30

In times of inflation,which cost flow assumption provides the highest inventory asset?

(Multiple Choice)

4.7/5

(45)

Question 31

Use the information below to answer the following questions: Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: \ \ Beginning accounts receivable 100000 Sales (all credit) 720000 Beginning accounts payable 70000 Cash received from customers 680000 Beginning inventory 160000 Cash paid to suppliers 380000 Purchases (all credit) 350000 Ending inventory count 90000 -What was the balance of Pinkerton Ltd's accounts payable at the end of the period?

(Multiple Choice)

4.9/5

(37)

Question 32

Use the information below to answer the following questions: Pinkerton Ltd uses a perpetual control system for its inventory. It had the following data for a recent period: \ \ Beginning accounts receivable 100000 Sales (all credit) 720000 Beginning accounts payable 70000 Cash received from customers 680000 Beginning inventory 160000 Cash paid to suppliers 380000 Purchases (all credit) 350000 Ending inventory count 90000 -If Pinkerton Ltd had employed the periodic inventory method,what would its gross profit have been?

(Multiple Choice)

4.9/5

(35)

Question 33

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: Opening Balance Purchases Sales September15 units@ \2 00 \ September35 units @ \2 40 September 77 units 123 units@ \2 60 275 units 256 units@ \2 00 -What was the value of cost of goods sold of Algo,using the LIFO assumption in a perpetual inventory system?

(Multiple Choice)

4.8/5

(42)

Question 34

During the year ended 30 June 2008,Rico Ltd had net sales of $750 000 and net purchases of $440 000.Cost of goods sold was $475 000.What was Rico Ltd's gross profit for the year ended 30 June 2008?

(Multiple Choice)

4.8/5

(30)

Question 35

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: Opening Balance Purchases Sales September15 units@ \2 00 \ September35 units @ \2 40 September 77 units 123 units@ \2 60 275 units 256 units@ \2 00 -What was the value of ending inventory of Algo,using the LIFO assumption in a periodic inventory system?

(Multiple Choice)

4.9/5

(40)

Question 36

Use the information below to answer the following questions: At 1 July 2011, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2012, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15,000. -What were Epsilon Pty Ltd's net sales for the year?

(Multiple Choice)

4.8/5

(40)

Question 37

Use the information below to answer the following questions: Diligent Ltd had 5 units of the commodity Algo on hand at 1 September 2012. The following purchases and sales were made during September: Opening Balance Purchases Sales September15 units@ \2 00 \ September35 units @ \2 40 September 77 units 123 units@ \2 60 275 units 256 units@ \2 00 -What was the value of ending inventory of Algo,using the moving weighted average assumption and a perpetual inventory system?

(Multiple Choice)

4.9/5

(34)

Question 38

If purchase prices are falling,which cost flow assumption provides the highest cost of goods sold?

(Multiple Choice)

4.8/5

(41)

Question 39

Use the information below to answer the following questions: A company purchases and sells Roofoo. It began last year with 5 units of Roofoo on hand at a cost of $10 each, and during the year its purchases and sales were as follows: Date Units purchased Units sold Units on hand Purchase price July 1 5 \ 10 Sept 10 5 10 \ 12 Dec 20 6 4 Mar 3 4 8 \ 15 June 10 5 3 -What was the value of ending inventory of Roofoo,using the LIFO assumption in a periodic inventory system?

(Multiple Choice)

4.7/5

(29)

Question 40

Which of the following statements about the use of the LIFO assumption is true?

Which of the following statements about the last-in,first-out (LIFO)assumption is true?

Which,if any,of the following cost flow assumptions is NOT affected by the inventory control method employed,i.e.periodic or perpetual?

The entry to record a credit sale when the periodic inventory method is employed will include a debit to:

Which of the following inventory assumptions provides the best matching of revenues with expenses?

Which of the following would produce the lowest net profit in periods of falling prices if inventory levels are not decreasing?

Which of the following journal entries is one of the entries made to record a credit sale under the perpetual inventory system?

In times of inflation,which cost flow assumption provides the highest inventory asset?

During the year ended 30 June 2008,Rico Ltd had net sales of $750 000 and net purchases of $440 000.Cost of goods sold was $475 000.What was Rico Ltd's gross profit for the year ended 30 June 2008?

If purchase prices are falling,which cost flow assumption provides the highest cost of goods sold?

Introduction to Financial Accounting

Measuring and Evaluating Financial Position and Financial Performance

The Double-Entry System

Record-Keeping

Accrual Accounting Adjustments

Financial Reporting Principles, accounting Standards and Auditing

Sustainability Reporting

Internal Control and Cash

Noncurrent Assets

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Appendix: Special Journals, subsidiary Ledgers and Control Accounts

Filters